Multiple Choice
An optimizing consumer will select the consumption bundle in which the
A) ratio of total utilities is equal to the relative price.
B) ratio of income to price equals the marginal rate of substitution.
C) marginal rate of substitution is equal to the relative price of the goods.
D) marginal rate of substitution is equal to marginal utility.
Correct Answer:
Verified
Correct Answer:
Verified
Q81: Figure 21-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1272/.jpg" alt="Figure 21-2
Q218: Suppose a consumer spends her income on
Q219: Consider the indifference curve map for nickels
Q220: Which effect of a price change moves
Q221: Assume that a college student spends her
Q223: Figure 21-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2178/.jpg" alt="Figure 21-8
Q223: If an indifference curve is bowed in
Q224: The following diagram shows two budget lines:
Q227: Figure 21-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2178/.jpg" alt="Figure 21-4
Q431: Scenario 21-2<br>Fred has recently graduated from college